The Wall Street Journal on Tuesday cited US officials as saying that the two countries were holding advanced talks about opening the facility in northern Cuba.
It added that it could pave the way for Beijing to station troops there permanently and expand espionage activities.
The report comes after the White House earlier claimed Beijing has spy facilities on the island about 145 km (90 miles) from the US.
The Wall Street Journal said on June 9 that China has reached a secret deal with Cuba to establish an electronic eavesdropping facility on the island roughly 100 miles (160 km) from Florida.
The Chinese government denied a report indicating it had reached a multi-billion-dollar agreement to build an “eavesdropping” facility in Cuba, suggesting the US was “spreading rumors and slander,” though both American and Cuban officials have also denied the agreement exists.
Also, Bruno Rodríguez Parrilla, Cuban Minister of Foreign Affairs has said that the report about the presence of a Chinese spy base in Cuba is false.
MNA/PR